Connect with us

CURRENCIES

Exchange rate weakens at NAFEX window as Naira settles at N410/$1

Naira closed against the US Dollar at N410/$1 on Friday, 19th February 2021, indicating a drop of 0.54%

Published

on

Friday 19th February 2021: The exchange rate between the Naira and the US Dollar closed at N410/$1 at the NAFEX window, where forex is traded officially. Naira  

Naira closed against the US Dollar at N410/$1, representing a 0.54% drop compared to N407.8/$1 recorded on Thursday 18th February 2021. This is the second time in the week that the exchange rate has closed at N410/$1 and the ninth consecutive trading day it closed over N400/$1.

Also, Naira depreciated at the parallel market to close at N478/$1 on Friday, 19th February 2021This represents a N1 shortfall compared to N477/$1 recorded on the previous day.

Trading at the official NAFEX window

The Naira depreciated against the dollar at the Investors and Exporters (I&E) window on Friday, closing at N410/$1 for the second time in the week. This represents a N2.2 drop when compared with the N407.8/$1 that it closed on the previous trading day. 

  • The opening indicative rate closed at N407.61 to a dollar on Friday. This represents a 48 kobo drop when compared to N407.13 to a dollar that was recorded the previous trading day on Thursday, February 18, 2021. 
  • An exchange rate of N424.15 to a dollar was the highest rate during intra-day trading before it closed at N410/$1. It also sold for as low as N390/$1 during intra-day trading. 
  • It is also worth noting that throughout the week, the lowest rate during any inter-day trading was N390/$1. 
  • However, forex turnover at the Investor and Exporters (I&E) window rose by 5.9% on Friday, February 19, 2021. 
  • According to the data tracked by Themoneymetrics from FMDQ, forex turnover increased from $62.69 million on Thursday, February 18, 2021, to $66.41 million on Friday, February 19, 2021. 

Cryptocurrency Watch

Bitcoin, the largest cryptocurrency in the world reached an all-time high on Sunday, 21st 2021 to stand at $58,022.48 as of 9:37 pm. 

  • This is just two days after the world’s most demanded crypto-asset breached the $1 trillion market capitalisation to become the sixth most-valuable asset worldwide. 
  • So far in the year, Bitcoin has gained 97.2% from $29,424.17 recorded as of 31st of December 2020. 
  • Meanwhile, the richest man in the world, Elon Musk disclosed through his twitter handle that the price of the two leading cryptos seems to be in overbought territory. 
  • However, popular American online financial advisory company, Motley Fool disclosed that it will be investing $5 million in Bitcoins in the coming weeks using the firm’s fund. 

Oil price dips as Saudi Arabia moves to reverse oil production cut

Crude oil price (Brent crude) dipped on Friday, 19th February 2021 to close at $62.91. 

  • Brent Crude oil price declined by 1.6% to close at $62.91 on Friday. 
  • The decline in oil prices came on the back of Saudi Arabia’s move to increase oil output. According to reports during the week Saudi Arabia is poised to reverse its 1mbpd voluntary production cut in the coming weeks. 
  • Also, about 4mb/d of US oil production was sidelined due to power outages and other equipment failures during the week, which include the damage of four of Texas’ largest oil refineries. A development that is expected to reduce crude oil demand. 
  • Meanwhile, WTI closed at $59.24 (-2.12%), OPEC Basket gained 1.52% to close at $63.43, Bonny Light closed at $62.09 (-1.16%) while Natural gas dipped by 0.42% to settle at $3.069. 

Dwindling external reserve

  • Nigeria’s external reserve dipped further by Thursday, 18th February 2021, to stand at $35.47 billion. 
  • This represents a decline of 0.15% compared to $35.53 billion recorded as Wednesday, 17th February 2021. 
  • Despite rallying oil prices, Nigeria’s external reserve has recorded a steady decline since 25th of January 2021, losing a sum of $958.1 million in less than a month. 
  • It is worth noting that despite the significant increase recorded earlier in January, the current reserve positive is only $99.9 million more than $35.37 billion recorded as of 31st December 2020. 
Advertisement
Click to comment

Leave a Reply

CURRENCIES

Naira gains at official market as CBN moves to launch digital currency in October

Published

on

Thursday 22nd July 2021:  The exchange rate between the naira and the US dollar closed at N411.63/$1 at the official forex market.

Naira appreciated against the US dollar on Thursday, 22nd July 2021 to close at N411.63/$1. This represents a 4 kobo gain when compared to N411.67/$1 that was recorded on Monday, 19th July 2021.

At the parallel market, however, the naira remained stable against the US dollar at an exchange rate of N503/$1, the same rate that was recorded on Monday 19th July 2021.

However, the dollar supply at the official forex market dropped by 18.1% on Thursday to stand at $137.83 million as external reserve continues its rebound.

Also, an earlier report from Themoneymetrics suggests that the apex bank has concluded plans to launch the pilot scheme of its digital currency by October 1, 2021.

Trading at the official NAFEX window

Naira appreciated against the US dollar at the Investors and Exporters window on Thursday to close at N411.63/$1 as against the N411.67/$1 recorded on Monday, 19th July 2021.

The opening indicative rate stood at N411.57/$1 on Thursday, representing a 47 kobo drop when compared to N411.10/$1 recorded in the previous trading session.

An exchange rate of N412.78/$1 was the highest rate recorded during intra-day trading before it settled at N411.63/$1, while it sold for as low as N403.22/$1 during intra-day trading.

Meanwhile, forex turnover at the Investors and Exporters (I&E) window dropped by 18.1% on Thursday, 22nd July 2021.

According to data tracked from FMDQ, forex turnover declined from $168.19 million recorded on Monday, 19th July 2021 to $137.83 million on Thursday, 22nd July 2021.

Cryptocurrency watch

The world’s most popular and largest cryptocurrency, Bitcoin, continued its rebound for the second consecutive day to close at $32,267.63 as of Thursday evening, rising by 0.70%.

Bitcoin steadied as traders mulled the largest cryptocurrency’s next move following a rebound stoked by comments from Elon Musk, Jack Dorsey and Cathie Wood.

Other cryptocurrencies such as Ethereum and Dogecoin, held onto gains, as did the Bloomberg Galaxy Crypto Index.

Some $1.3 trillion has been wiped off the market value of cryptocurrencies since mid-May.

Bitcoin has faced a range of obstacles, including stepped-up regulatory scrutiny in China, Europe and the U.S. and concerns about the energy needed by the computers underpinning it. Investors have also generally become more cautious about speculative assets.

Meanwhile, the second-largest cryptocurrency by market capitalization, Ethereum, was up by 2.16%, to close at $2,024.34.

Crude oil

Crude oil prices held its biggest gain in 3 months amid expectations that recovering demand will soon tighten global markets as Brent crude rose by 2.16% to close at $73.79 per barrel on Thursday evening.

Oil rose to the highest in a week amid expectations that recovering demand from the U.S. to India and Europe will further tighten global crude markets.

Oil has rebounded after an almost 8% loss on Monday as fears around the delta variant and its impact on economic recovery shook broader markets.

The price plunge came just after a weekend meeting of OPEC+, at which the 23-nation alliance led by Saudi Arabia and Russia finalized plans to restore halted production.

Since then, the market has been recovering as traders anticipate that OPEC+’s scheduled output increases aren’t large enough to avert a shortfall in the coming months.

Meanwhile, according to reports, the world’s top oil importer, China, has started to release over 20 million barrels of crude oil from its strategic reserve in a move seen as seeking to curb the recent oil price rally.

Brent Crude rose by 2.16% to close at $73.79 per barrel, WTI dropped by 0.24% to close at $71.74 after initially climbing 2.3% earlier on Thursday. Natural Gas dropped by 0.20% to close at $3.995, while OPEC basket dropped by 4.44% to close at $69.93 per barrel.

However, the Bonny Light rose by 3.70% to close at $70.87 per barrel.

External reserve

Nigeria’s foreign reserve continued its rebound as it rose by $53 million on Monday, 19th July 2021, to close at $33.171 billion as against the N33.118 billion that was recorded on Friday, 16th July 2021.

Nigeria’s reserve had recorded a significant reduction in recent times, losing about $219.42 million month-to-date and about $2.27 billion from January to date.

The change in tide to a positive is an indication of increased forex earnings, which would come as a relief for Nigeria, as an increase in external reserve will help Nigeria meet up with pent-up financial obligations.

The increase will also serve as a relief for Nigeria’s exchange rate, which had been on a downturn lately, crossing the N500/$1 mark at the parallel market.

Continue Reading

CURRENCIES

CBN to launch digital currency by October

Published

on

The Central Bank of Nigeria with its stakeholders outlined its digital currency initiative via a private webinar held today.

The Nigerian Central Bank Governor, Godwin Emefiele had earlier announced that the bank will be working on a central bank digital currency during the 306th Banker’s Committee meeting.

According to private sources, the pilot scheme will be launched on October 1st, 2021.

The press briefing delivered by the Director IT department, Rakiya Mohammed, at the end of the meeting further explained that the Bank had been conducting research in regards to central bank digital currencies since 2017 and may conduct a proof of concept before the end of this year.

The project name is tagged Project GIANT and it will use the Hyperledger Fabric Blockchain.

Nigeria’s central bank further revealed that the importance of eNaira includes Macro management and growth, cross border trade facilitation, financial inclusion, monetary policy effectiveness, improved payment efficiency, revenue tax collection, remittance improvement, and targeted social intervention.

The Nigerian Apex Bank also underlined the benefits for the fintech ecosystem that include enhanced operational efficiency, opportunities for fintech start-ups in building services/products like financial inclusion that will contribute to the economic growth, and the creation of a new system complimenting the traditional payment system.

Continue Reading

CURRENCIES

Naira falls to N506/$ at black market as dollar supply slides by 5.77%

Published

on

Friday 16th July 2021: The exchange rate between the naira and the US dollar closed at N410.38/$1 at the official forex market.

Naira appreciated against the US dollar on Friday, 16th July 2021 to close at N410.38/$1. This represents an 82 kobo gain when compared to N411.2/$1 that was recorded on Thursday, 15th July 2021.

At the parallel market, however, the naira depreciated against the US dollar at an exchange rate of N506/$1, a loss of N1 when compared to the N505/$1 that was recorded on Thursday 15th July 2021 and the first depreciation since Friday, 9th July 2021.

On the other hand, the dollar supply at the official forex market dropped by 5.77% on Friday to stand at $116.55 million.

Trading at the official NAFEX window

Naira appreciated against the US dollar at the Investors and Exporters window on Friday to close at N410.38/$1 as against the N411.2/$1 recorded on Thursday, 15th July 2021.

  • The opening indicative rate stood at N411.20/$1 on Friday, representing a 3 kobo drop when compared to N411.17/$1 recorded in the previous trading session.
  • An exchange rate of N412.76/$1 was the highest rate recorded during intra-day trading before it settled at N410.38/$1, while it sold for as low as N400/$1 during intra-day trading.
  • Meanwhile, forex turnover at the Investors and Exporters (I&E) window dropped by 5.77% on Friday, 16th July 2021.
  • According to data tracked from FMDQ, forex turnover declined from $123.69 million recorded on Thursday, 15th July 2021 to $116.55 million on Friday, 16th July 2021.

Cryptocurrency watch

The world’s most popular and largest cryptocurrency, Bitcoin, recorded a significant decline on Sunday evening to close at $31,579.93, dropping by 1.82%

  • Twitter CEO, Jack Dorsey has revealed that his fintech company, Square is building a new unit that is focused on creating and implementing decentralized finance (DeFi) services on the Bitcoin network.
  • The Malaysian authorities have destroyed 1,069 cryptocurrency rigs after they were confiscated in raids earlier this year.
  • The second-largest cryptocurrency by market capitalization, Ethereum also dipped significantly by 4.45% to close at $1,886.67.
  • Ethereum co-founder, Anthony Di Iorio will be severing his major ties to the cryptocurrency industry and selling his current venture Decentral to start a philanthropic foundation in the next year.

Crude oil

The crude oil market extended its bearish run on Sunday, 18th July 2021 as Brent Crude dropped below the $73 per barrel mark as the market assesses the impact of higher crude supply from the OPEC+ group after a reported compromise between key OPEC members, Saudi Arabia and the United Arab Emirates (UAE).

  • Brent Crude dropped significantly by 1.37% to close at $72.58 per barrel, WTI also dropped significantly by 1.30% to close at $70.88, Natural Gas rose by 0.90% to close at $3.707, while OPEC basket dropped by 2.84% to close at $73.15 per barrel.
  • However, the Bonny Light rose by 1.44% to close at $75.23 per barrel.
  • OPEC and its allies agreed to gradually add more oil supplies to the market, ending a two-week spat between Saudi Arabia and the United Arab Emirates.
  • The agreement means the cartel will boost output by 400,000 barrels a day each month from August, continuing until all of its halted output has been revived.
  • The multifaceted agreement gives consumers a clearer view of how quickly OPEC+ will restore the 5.8 million barrels a day of production it’s still withholding, since making deep cuts last year in the initial stages of the pandemic.
  • Meanwhile, earlier, oil prices recorded their worst week since March under the double blow of additional OPEC supply coming to markets and unfavourable fuel inventory data from the United States.
  • The Energy Information Administration (EIA) reported yet another sizeable crude oil inventory draw with builds in both gasoline and middle distillates, at 1 million barrels and 3.7 million barrels, respectively.

External reserve

Nigeria’s foreign reserve rose by $1 million on Thursday, 15th July 2021, to close at $33.104 billion as against the N33.103 billion that was recorded on Wednesday, 14th July 2021.

  • Nigeria’s reserve had recorded a significant reduction in recent times, losing about $219.42 million month-to-date and about $2.27 billion from January to date.
  • The change in tide to a positive is an indication of increased forex earnings, which would come as a relief for Nigeria, as an increase in external reserve will help Nigeria meet up with pent-up financial obligations.
  • The increase will also serve as a relief for Nigeria’s exchange rate, which had been on a downturn lately, crossing the N500/$1 mark at the parallel market.
Continue Reading
Advertisement
Advertisement
Advertisement
Advertisement unmute the video for sound
Advertisement
Advertisement

Facebook

Follow us on Twitter

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 96 other subscribers

Trending